March 9, 2011 Wedbush Investment Conference Investor Presentation Exhibit 99.1 |
- Page 2 - This presentation contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including, without limitation, the outlook for general industry conditions, future operating results, capital expenditures, expansion and growth opportunities, financing activities and other such matters, are forward-looking statements. Although the Company believes that its expectations stated in this presentation are based on reasonable assumptions, actual results may differ from those projected in the forward- looking statements. For a more detailed discussion of risk factors, please refer to the Company’s Registration Statement on Form S-1 and its periodic reports filed with the United States Securities and Exchange Commission (“SEC”). Vringo expressly disclaims any obligations or undertaking to update or revise any forward- looking statements contained herein to reflect any change in Vringo’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Safe Harbor Statement |
- Page 3 - Vringo: The Name for Video Ringtones • We provide a comprehensive platform of video ringtones for mobile phones • Software allows users to create, download and share mobile entertainment content • WAP and Web sites encompass robust content integration and distribution systems • 200+ Vringo-enabled handsets (Windows, BlackBerry, Android, Symbian, J2ME) • Library of over 5,000 video ringtones; over 40 content partners • 23 patents pending for software platform and mobile applications (one patent issued) • Launched in six territories with carrier and other partners • 240,000 monthly subscribers in these paid launches • Founded in 2006 • 30 Employees • Headquarters located in New York • R&D based out of Israel • Strong early stage investors • Angel round of $2.4 M in 2006 • Warburg Pincus invested $12 M in 2007 • Bridge round of $3.0 M in Dec. 2009 • IPO June 2010 raised $11 M with Maxim, Ladenburg, and Chardan |
- Page 4 - Established and Well Seasoned Management • Strong management team and BOD with experience in the U.S. financial markets • Track record of creating, running, investing and exiting successful technology companies Fast Growing Markets • 4.6 B global mobile subscribers (1) • 534 M global mobile video subscribers by 2014 (2)(4) • $25 B mobile application market by 2014 (3)(5) • $29 B mobile content market by 2012 (2) Strong Platform for Growth • Proven technology and products • Scalable business model • Major contracts signed with international mobile carriers and content providers • Robust Video Ringtone platform ready to deploy as turnkey Investment Highlights (1) United Nations estimate (2) Multimedia Intelligence (3) Juniper Research (4) Not a projection for Vringo subscribers (5) Not a projection for Vringo market size Will grow organically and through acquisition • Have announced signing of LOI for m-Wise acquisition • Real opportunity for consolidation in mobile service arena |
- Page 5 - Consistently Winning Industry Awards Best mobile service for social community and user generated content - October 2007 Best use of phone functionality - December 2007 Always On Top 100 Media winner - January 2008 Best mobile social networking service, 2 nd place - January 2008 Finalist - March 2008 Best mobile community/fan content - November 2008 Winner Red Herring 100 - April 2009 Best ringtone innovation - June 2008 |
- Page 6 - Major Outlet Media Coverage “offers an eyeful…has to be seen to be believed” “Vringo has something that others lack…the caller has the power” “the next level ringtone…this company’s fun and unusual product is just getting better and better” “every call thus becomes an opportunity to share content and to establish identity…Vringo has a head start over competitors” “the service aims to tap consumer’s obsession with creating their own content” “the next big thing in ringtones…soon everyone could have a Vringo, a personalized video ringtone” “Next big thing in the ringtone wave” |
- Page 7 - “One of Israel’s leading venture capitalists” (Washington Post) Founder of Israel Seed Partners, managing $260 M in 4 funds-exits include: • Shopping.com (acquired by eBay Inc.) for $640 M • Answers Corp. (NasdaqCM: ANSW) • Native Networks (acquired by Alcatel (NYSE: ALA)) • Compugen (Nasdaq: CGEN) • Xacct Technologies (acquired by Amdocs Ltd. (NYSE: DOX)) • Business Layers (acquired by CA, Inc. (NasdaqGS: CA)) • Cyota (acquired by RSA/CA NasdaqGS: CA) Manager of several startups with exits including: • MERET (acquired by Amoco/BP) • Accent (Nasdaq: ACNTF) Seasoned Management & Governance Jon Medved Founder & CEO, Board member Ellen Cohl VP Finance & Governance Formerly Arthur Andersen Dov Frohlich COO Formerly NMS Communications Josh Wolff VP Services & Solutions Formerly NMS Communications Andrew Perlman President and Board member Formerly EMI Music Eshed Doni VP Products Formerly eyeSight Mobile |
- Page 8 - Was Founder, Chairman and CEO of the Beanstalk Group, the world’s largest independent licensing agency, now part of the Omnicom Group. Served leading Brands such as: • AT&T • IBM • Harley Davidson • Unilever • Ford Motor Company Vringo Board of Directors Seth (“Yossi”) Siegel Chairman of the Board Several time LIMA and Clio award winner Marketing and brand commentary appears in the NY Times, BrandWeek, Wall Street Journal, etc. Ralph Simon Board Member Chairman Emeritus Founder MEF - Americas Founder and CEO Relegance, sold to AOL Edo Segal Board Member Jon Medved CEO and Board member Formerly Founder and GP Israel Seed Phil Serlin Board Member Chairman, Audit Committee CFO BiolineRX Formerly Coopers, SEC John Engleman Board Member Classic Media Co-CEO Andrew Perlman President and Board member Formerly SVP, EMI Music |
- Page 9 - • Mobile video has arrived • Mobile video data usage is expected to grow at a 131% CAGR from 2009 - 2014 (1) • 534 M global mobile video subscribers by 2014 (2) • Five-fold increase since 2008 • $16 B in revenues projected in the US (2) • Mobile social networking is growing exponentially • Facebook and Twitter at the forefront of the phenomenon • Growing mobile social networking and user-generated content revenue • $1.8 B in 2008 to $11.8 B in 2013 (3) • Approximately 1 out of every 8 people world-wide has used a digital social network (4) • User generated content continues to grow • YouTube revolution • Advances in technology that facilitate the creation of user-generated content • Rise of smart phones • Global Smartphone shipments experienced 72% growth YOY from 2009-2010 (5) • Increased bandwidth enables rich media transfer across many devices • Apps everywhere…with Android unit growth of 888% from 2009 to 2010 (5) • Global 3G penetration expected to exceed 20% by the end of 2010 (4) (1) Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2009-2014, 2/10 (2) Pyramid Research (3) Juniper Research (4) Morgan Stanley’s Internet Trends, 04/10; comScore Global, 12/09 (5) Gartner Vringo in Middle of Rapidly Growing Markets and Trends |
- Page 10 - Ring Tone Market-Ready for Vringo’s Innovation • Ringtone business was created in 1997 • Further developed in 2002 with the creation of truetone and mastertone • Ringback tone was created in 2004 • $4.7 B ringback tone market by 2012 (1) • 3x growth from 2008 • More than one-third of mobile users download ringtones from various sources (1) • 40% of such users frequently change their ringtones • Ringtone business has seen little innovation since 2004 • Traditional suppliers of ringtones are hurting • Market ready for next evolution of products and services (1) Ipsos MediaCT |
- Page 11 - Future of Mobile Personalization audio ring tone audio ring back tone video ringtone Audio ringtone market today Phone capabilities Vringo’s market video ringback/ ring forward Better user experience New revenue opportunities social personal- ization tools |
- Page 12 - 1. Justin logs onto Vringo.com on his PC/mobile or browses through his Vringo application for a new clip 3. Vringo server is updated immediately 4. Justin’s new Vringo is automatically sent to all of Justin’s buddies 5. New Vringo is cached on handsets, ready to be played whenever Justin calls Justin HTTP TCP/IP Vringo server Vringo clients Vringo.com Vringo Mobile App HTTP 2. Justin picks out a Rolling Stones clip and makes it his phone’s ringtone Getting a New Vringo Onto a Phone |
- Page 13 - Four Product Platform Components Mobile application Channels - automatic content delivery Custom store fronts Studio - online ringtone editor • Customer store front • Viral marketing engine • 300+ handsets • Java, Blackberry, Windows Mobile, Android, Symbian • Opportunity exists to sell premium content bundles based on the core application • World’s first Web-based video ringtone editor • Can be customized for partners (e.g., Marvel) • Video ringtones have a shorter shelf life • Customers can subscribe to automatic content refreshes • Customizable web/mobile store front • TV networks, retailers, political campaigns, live events • Opportunity exists to set up advertising- supported storefronts – “free” to consumers Indicative example |
- Page 14 - World’s Largest Video Ringtone Library 5,000+ video clips |
- Page 15 - Simple, Scalable Business Model Target: $12 - $30 per user per year for Net Vringo ARPU Premium: $1-3 per clip Monthly user subscription User Vringo Operator $1.0 - $5.0 No data traffic charges $0.3*-$3.5 $0.6 - $2.5 X Operator penetration Target Modeling assumptions 4-6% Current audio RBT 1-2%** ~15% * Effective revenue of $0.15 per subscriber - net of uncollected subscription fees ** Average Penetration of addressable market within 1 year of new market launch |
- Page 16 - Signed Revenue Deals: Initial Basis for Growth Markets in which we have launched or will launch our service through carriers have several hundred million mobile subscribers (1) Currently in discussions with several other carriers pursuing additional agreements over the next 12 - 24 months (1) Source: United Nations |
- Page 17 - 6 Carrier Launches So Far…others pending Name of Operator/Partner Launch Date Operator Subscribers (M) Growth Potential MTS Group/Vivacell (Armenia) July 2009 2 Part of MTS Group which has 100 M subs Maxis (Malaysia) October 2009 11.4 Largest operator in Malaysia Avea (Turkey) November 2009 12.1 Third largest operator in Turkey; subsequently replaced by agreement with Retromedya Etisalat (UAE) March 2010 7.3 Group includes 16 countries, 94 M global subs RTL (Belgium) May 2010 11 Service runs on all 3 major carriers Vodaphone Shop (Germany, Greece, Ireland, Italy, Netherlands, Portugal, Spain, UK) October 2010 Initial free app launch in 8 countries in Europe, with a paid service expected to launch soon Ovi Store (UK) November 2010 Advanced Nokia phones in UK Orange (UK) [Everything Everywhere Ltd.] February 2011 > 30* Orange is subsidiary of UK’s biggest communications company jointly-owned by Deutsche and France Telecom Verizon (US) Pending > 92 Initial launch for Blackberry & Android phones StarHub (Singapore) Pending > 2 Initial launch for Android phones Hungama Pending >400 Launching with 15 operators * 30m includes combined subscribers for Orange (UK) and T-Mobile (UK) parent Everything Everywhere; initial launch is with Orange (UK) subscribers |
- Page 18 - Marketing the Service: Sample Collateral |
- Page 19 - Integrated Slots in Carrier Portal |
- Page 20 - Hot New Releases in User-Friendly Formats |
- Page 21 - Timely User Acquisition Tools Vringo’s Creative Team renews the storefront, refeshes the content, and continually pushes timely attractions |
- Page 22 - Marketing Tools – “Made for Maxis” • Refreshed New-Look Monthly Banner Ads •Holiday Contest Promotions and Banners Tailored for WAP Portal and Carrier Microsite |
- Page 23 - Increasing The Scale: Subscribing to Vringo via USSD Menu* Dial *100# to open USSD menu Select 9 for FREE video ringtones Logged in Subscription Info and terms of Service * Abbreviated Format for Presentation Purposes |
- Page 24 - • Growing our business in the countries where we have launched • Continue to grow organically in each, driving subscription revenue • Adding new customer acquisition techniques, such as: • Brand sponsorships, USSD, advertising • Add additional carriers in the territory • Rolling out new countries and partners • Continuous development of a rich pipeline • Add 2-3 territories/partners per quarter • Migration to wealthier markets • Bring new monetization models into play • Advertising-based Vringo may become important • App stores and content bundles • Brand supported apps • Leverage carrier relationships for new services Three Drivers of Growth |
- Page 25 - Vringo Cumulative Subscriber Growth Across All Carriers |
- Page 26 - Leverage relationships for additional services • Will launch new Vringo services with carrier partners • New services will also be on subscription basis • New services developed in-house or acquired Moving to higher subscription rates • Intend gradual shift in subscriber pricing to $2.99 - 4.99 monthly fee, depending on currency and territory • Will start seeing revenue from more lucrative markets of North America and Western Europe • Shift to these markets which are mostly post-paid, as opposed to pre-paid, will have positive effect on billing efficiency Initial Launches demonstrate viable subscription model • 240,000 subscribers in paid subscription services world-wide • Added 100,000 subscribers over last four months, 70% growth • Average net monetization $0.13 per subscriber per month • 6 paid launches so far — many more to come Driving Subscriber Growth and Revenue |
- Page 27 - Deal with Everything Everywhere Ltd.; UK’s largest mobile company to launch Vringo together in the UK market Everything Everywhere operates both Orange (UK) and T-Mobile (UK) with combined total of over 30 M subscribers, and is owned by France Telecom and Deutsche Telekom Have first launched with Orange (UK) |
- Page 28 - Importance of Orange Launch • First major launch in the strategic European market • UK is a vibrant and active mobile content and application market • Vringo has until now focused on proving its business model in smaller, less developed markets • Terms: Orange branded service, revenue split, zero rating for data, promotion of service on Orange properties |
- Page 29 - Orange UK Launch: Mobile Ecosystem Partners in Place to Maximize Performance |
- Page 30 - Vringo Platform Expansion |
- Page 31 - Vringo LOI for Asset Purchase of m-Wise (OTC.BB: MWIS) • Vringo has announced the signing of a non-binding Letter of Intent (“LOI”) that sets forth terms for asset purchase of m-Wise, Inc. • Transaction is contingent on definitive agreement, approval of respective Boards and shareholders, and regulatory approval. • m-Wise provides a mobile content management, delivery and monetization platform used by major suppliers of mobile content and services • m-Wise platform is used for over 3 M daily mobile service transactions and has supported over 1 B such transactions cumulatively • Nine months 2010 reported m-Wise revenue was $2.1 M • Vringo will provide m-Wise with 1,900,000 shares, a management retention option of 500 K shares, cover $615 K expenses over two years and assume certain other liabilities of m-Wise , and provide a $325 K promissory note convertible into 200 K shares |
- Page 32 - Strategic and Market Rationale • Mobile apps and services, in particular video and imaging, are fragmented and in need of consolidation • Carriers, content owners and brands are seeking an end-to-end array of mobile turnkey services and want to buy these services from trusted suppliers due to lack of internal development resources • Solutions are sought that include Server-side components, transport, client apps and wap properties • Customers are focused on delivery of rich media services including video, imaging (pictures), music, social apps, etc. • Traditional suppliers of these services have not moved effectively to the “cloud” or embraced the app revolution • A company with strong server, transport, and application footprint will be a desirable partner for major customers • Services and carrier groups are largely global — one can leverage initial successes elsewhere • We have already seen validation of this in initial discussions with customers |
- Page 33 - m-Wise: why? • Powerful platform that will allow us to offer cloud based end-to-end mobile services and solutions to our customers • Utilizing Vringo’s public currency will allow us to grow faster through acquisitions like m-Wise • Few pure play mobile companies with pedigree public listings • Strong Synergies: • Product Synergy: m-Wise back-end together with Vringo app expertise • Customer Synergy: m-Wise has a good group of leading companies as customers • Geographic Synergy: Focus on complimentary territories • Revenue and Margin contribution: m-Wise will immediately impact our revenue and help us move towards profitability • m-Wise platform is used to host app stores which is a frequent carrier request |
- Page 34 - m-Wise Client Base |
- Page 35 - Signed Revenue Deals: Initial Basis for Growth Markets in which we have launched or will launch our service through carriers have several hundred million mobile subscribers (1) Currently in discussions with several other carriers pursuing additional agreements over the next 12 - 24 months (1) Source: United Nations |
- Page 36 - m-Wise Mobile Content Clients |
- Page 37 - m-Wise Platform Overview |
- Page 38 - m-Wise Platform Overview One-Stop-Shop for Online & Mobile Content Solutions |
- Page 39 - MOMA Service Delivery Platform |
- Page 40 - The MOMA SDP – Main Functionality • Multi-territory, multi-country, multi-currency, multi-lingual, multi- timezone, cross network platform messaging and billing • Central management and maintenance • Service provisioning (Quiz, Voting, Binary content, coupons, etc…) • Management and delivery of any type of binary content, including music, videos, pictures, games and applications • Medium independent – operates on SMS, MMS, WAP, web, IVR, and email simultaneously • Flexible rating, pricing and billing • Comprehensive reporting, analytics and CDRs records • Extensive customer care tools • Open API for web/WAP developers, 3 rd parties application developers The MOMA Service Delivery Platform (SDP) |
- Page 41 - Vringo Financial Position Cash and cash equivalents 7,394 744 Total current assets 7,704 3,518 Total assets 7,982 3,789 Total current liabilities 2,076 3,649 Total long-term liabilities 5,830 4,550 Total stockholders’ equity 76 (16,378) September 30, 2010 December 31, 2009 ($ 000) (Unaudited) (Audited) |
- Page 42 - Company Snapshot Stock Exchange/Ticker: NYSE Amex: VRNG VRNG Recent Price (3/8/11): $2.10 Shares Outstanding: (3/8/11) 5.7 M Market Cap: $12 M 3Q10 Revenue / Sequential growth rate: $54 K / 23% Special Bridge/Bank warrants at $2.75 exercise price (3/8/11) 1.1M Out-of-the-money warrants (3/8/11) 6.6 M 3Q 10 Net Income (Loss): ($2.8 M) Net Granted stock options 3.1 M Director and Officer Ownership: 8.7% Warrant Exchange/Ticker: NYSE Amex: VRNG-W VRNG-W Recent Price (3/8/11): $0.14 VRNG-W exercise price & expiration $5.06; 6/21/15 |
- Page 43 - Established and Well Seasoned Management • Strong management team and BOD with experience in the U.S. financial markets • Track record of creating, running, investing and exiting successful technology companies Fast Growing Markets • 4.6 B global mobile subscribers (1) • 534 M global mobile video subscribers by 2014 (2)(4) • $25 B mobile application market by 2014 (3)(5) • $29 B mobile content market by 2012 (2) Strong Platform for Growth • Proven technology and products • Scalable business model • Major contracts signed with international mobile carriers and content providers • Robust Video Ringtone platform ready to deploy as turnkey Investment Highlights: Recap (1) United Nations estimate (2) Multimedia Intelligence (3) Juniper Research (4) Not a projection for Vringo subscribers (5) Not a projection for Vringo market size Will grow organically and through acquisition • Have announced signing of LOI for m-Wise acquisition • Real opportunity for consolidation in mobile service arena |